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III IIIIIIIIIIIIIIII <br />999 <br /> STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St.. Room 215 <br />Denver, Colorado 80203 D t v 15 1 o N O F <br />Phone: 1303) 866-3567 MINERAL 5 <br />FAX: 1303 8J2~81O <br />5 <br />h?0 & <br />une 14, <br />01 <br />GEOLOGY <br /> REC LAMAiIOi <br />Mr. Mark Wavment MINING•SAFETY <br />Lodestar Energy,lnc. <br />HC 35, P.O. Box 370 Bill Owens <br />Helper, Utah 84526 cover^~r <br /> Greg E. Walther <br />RE: Status of Outstanding lssues Execulwe Ducaur <br />McClane Canyon Mine (C-1981-004) Michael B Long <br />Munger Canyon Mine (C-1981-020) Divison D~recwr <br />Dear Mr. Wayment: <br />1 spoke to you on the phone yesterday, and said I would follow up with a letter. We are concerned with <br />certain outstanding permit review matters for the McClane and Ivtunger permits, and we are also concerned <br />with how the Lodestar bankruptcy filing will impact the ability of Lodestar to maintain compliance with <br />permitting, bonding, and reclamation requirements of the regulations. <br />Specific issues of concern at this time for McClane center on the permit renewal (current permit expires <br />July 6, 2001). Our preliminary adequacy review letter was sent to LEI on March 14, 2001, with a request <br />that responses be submitted to us within 60 days. We have not yet received a response. <br />Associated with the renewal review, we sent an amended reclamation cost estimate to LEI on May 18, and <br />requested that additional bond of $79,026.00 as indicated by [he amended estimate be provided to the <br />Division within 30 days of receipt of the letter. We are concerned as to how the bankruptcy filing will <br />affect the ability of LEI to provide the additional bond. <br />The Munger permitting issue that is outstanding pertains to Technical Revision 13, which addressed issues <br />raised during the most recent mid-tetra permit review. A preliminary adequacy review letter was sent to <br />LEI on January 10, 2001, and we have not yet received a response. <br />Please respond to this letter by June 18, 2001. In the response, please address the status of each of the <br />outstanding issues and commit [o providing complete and adequate responses by June 22, 2001. In <br />addition, please address how the bankruptcy filing will affect LEI's ability to operate in compliance with <br />DMG permitting, bonding, and reclamation requirements. <br />Please contact me if you have any questions, a[ (970)242-5025. My FAX number is (970)242-1516. <br />Sincerely, <br />Dan T. Mathews <br />Environmental Protection Specialist <br />cc: David Berry, DMG Denver <br />Sandy Brown, DMG Denver <br />